Classify the total costs of each of the following as variable, fixed, mixed, or
ID: 2415688 • Letter: C
Question
Classify the total costs of each of the following as variable, fixed, mixed, or step. Sales volume is the cost driver.
Salaries of quality inspectors when each inspector can evaluate a maximum of 500 units per day
Raw materials used in production
Fire insurance on factory building
Electric power in a factory
Keyboards purchased from a subcontract supplier in a computer assembly plant
Annual salary for the vice president of manufacturing
Salary of machine operator who is paid based on number of units produced on the machine
Property taxes
Overhead costs in the factory for incidental components such as small screws and rivets.
Water consumed by the plant, which is based on a flat fee plus actual consumption Answer 10
Salaries of quality inspectors when each inspector can evaluate a maximum of 500 units per day
Answer 1Raw materials used in production
Answer 2Fire insurance on factory building
Answer 3Electric power in a factory
Answer 4Keyboards purchased from a subcontract supplier in a computer assembly plant
Answer 5Annual salary for the vice president of manufacturing
Answer 6Salary of machine operator who is paid based on number of units produced on the machine
Answer 7Property taxes
Answer 8Overhead costs in the factory for incidental components such as small screws and rivets.
Answer 9Water consumed by the plant, which is based on a flat fee plus actual consumption Answer 10
Explanation / Answer
Items Ans Salaries of quality inspectors when each inspector can evaluate a maximum of 500 units per day Step Raw materials used in production Variable Fire insurance on factory building Fixed Electric power in a factory Mixed Electric power in a factory Variable Annual salary for the vice president of manufacturing Fixed Salary of machine operator who is paid based on number of units produced on the machine Variable Property taxes Fixed Overhead costs in the factory for incidental components such as small screws and rivets. Mixed Water consumed by the plant, which is based on a flat fee plus actual consumption Step